Key Takeaways
Torex Gold Resources Inc. (TSX: TXG) announced an enhanced capital program to return $350 million to shareholders in 2026 through a combination of share repurchases and dividends.
"The enhancements we have made in returning capital to our shareholders reflects our confidence in the underlying strength and free cash flow potential of the business," Jody Kuzenko, President and CEO of Torex, said. Kuzenko noted the program would not compromise other key capital allocation priorities, including growth projects.
The company's board declared a quarterly dividend of C$0.16 per share, a seven percent increase from the prior C$0.15 dividend. Based on the May 5 closing price, this implies a forward annualized dividend yield of approximately 1.1 percent. The dividend is payable on June 4, 2026, to shareholders of record as of May 21, 2026.
The planned $350 million return represents approximately 55 percent of the company’s forecasted 2026 free cash flow, which is expected to exceed $650 million. This builds on the $165 million returned to shareholders since June 2025, with $121 million of that occurring in the first quarter of 2026 alone.
Based on shares outstanding as of March 31, 2026, the total dividend payment in June is expected to be C$15.0 million, or approximately $11.0 million.
Torex Gold will continue to purchase shares under its existing Normal Course Issuer Bid (NCIB) program, which was renewed in November 2025. Through March 31, 2026, the company has repurchased 2,416,468 shares at an average price of C$69.81 per share. Share repurchases in the first quarter of 2026 reduced shares outstanding by 2.2 percent since the start of the year.
The company stated it will continue to allocate capital to extend mine life and enhance margins at its Morelos Complex in Mexico. Funds will also be used to advance the recently acquired Los Reyes project and support drilling programs across its portfolio in Mexico and Nevada.
The enhanced capital return program signals management's confidence in generating significant free cash flow from its operations. Investors will monitor the execution of the buyback and progress on the Morelos and Los Reyes projects for future value creation.
This article is for informational purposes only and does not constitute investment advice.
